Correlation Between 5I5j Holding and China Enterprise
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By analyzing existing cross correlation between 5I5j Holding Group and China Enterprise Co, you can compare the effects of market volatilities on 5I5j Holding and China Enterprise and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in 5I5j Holding with a short position of China Enterprise. Check out your portfolio center. Please also check ongoing floating volatility patterns of 5I5j Holding and China Enterprise.
Diversification Opportunities for 5I5j Holding and China Enterprise
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 5I5j and China is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding 5I5j Holding Group and China Enterprise Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Enterprise and 5I5j Holding is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on 5I5j Holding Group are associated (or correlated) with China Enterprise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Enterprise has no effect on the direction of 5I5j Holding i.e., 5I5j Holding and China Enterprise go up and down completely randomly.
Pair Corralation between 5I5j Holding and China Enterprise
Assuming the 90 days trading horizon 5I5j Holding Group is expected to under-perform the China Enterprise. In addition to that, 5I5j Holding is 1.07 times more volatile than China Enterprise Co. It trades about -0.12 of its total potential returns per unit of risk. China Enterprise Co is currently generating about -0.04 per unit of volatility. If you would invest 296.00 in China Enterprise Co on September 28, 2024 and sell it today you would lose (11.00) from holding China Enterprise Co or give up 3.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
5I5j Holding Group vs. China Enterprise Co
Performance |
| Timeline |
| 5I5j Holding Group |
| China Enterprise |
5I5j Holding and China Enterprise Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 5I5j Holding and China Enterprise
The main advantage of trading using opposite 5I5j Holding and China Enterprise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 5I5j Holding position performs unexpectedly, China Enterprise can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in China Enterprise will offset losses from the drop in China Enterprise's long position.| 5I5j Holding vs. Industrial and Commercial | 5I5j Holding vs. Agricultural Bank of | 5I5j Holding vs. China Construction Bank | 5I5j Holding vs. Bank of China |
| China Enterprise vs. INKON Life Technology | China Enterprise vs. Chahua Modern Housewares | China Enterprise vs. Anhui Deli Household | China Enterprise vs. China World Trade |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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